ESMA begins consultation on CCP resolution
18 November 2021 EU
Image: AdobeStock/Ricochet64
The European Securities and Markets Authority (ESMA) has launched a series of public consultations to gather information regarding how to implement its CCP resolution mandates.
The EU securities markets regulator has published consultation papers containing draft regulatory technical standards relating to resolution colleges, the content of central counterparty resolution plans, how to value CCP’s assets and liabilities during the resolution process, and safeguards in place for clients and indirect clients.
It has also published draft guidelines defining the circumstances under which a CCP is deemed to be failing (or likely to fail), along with valuation procedures in case of termination of contracts.
Nicoletta Guisto, an independent member of the CCP Supervisory Committee, says: “The launch of ESMA’s public consultations on the implementation of the CCP resolution mandates, is another important step towards ensuring consistency of EU CCP resolution regimes at EU level in line with the highest international standards.
“The proposed Regulatory Technical Standards and Guidelines complement the new Recovery and Resolution Regulation and will provide further guidance on the resolution phase, as well as giving EU regulators the necessary tools to ensure supervisory convergence across the EU.”
The consultation period in each case will remain open until 24 January 2022.
ESMA will host an open hearing on the consultation papers on 14 January 2022 and expects to publish final reports detailing its findings by Q2 2022.
The EU securities markets regulator has published consultation papers containing draft regulatory technical standards relating to resolution colleges, the content of central counterparty resolution plans, how to value CCP’s assets and liabilities during the resolution process, and safeguards in place for clients and indirect clients.
It has also published draft guidelines defining the circumstances under which a CCP is deemed to be failing (or likely to fail), along with valuation procedures in case of termination of contracts.
Nicoletta Guisto, an independent member of the CCP Supervisory Committee, says: “The launch of ESMA’s public consultations on the implementation of the CCP resolution mandates, is another important step towards ensuring consistency of EU CCP resolution regimes at EU level in line with the highest international standards.
“The proposed Regulatory Technical Standards and Guidelines complement the new Recovery and Resolution Regulation and will provide further guidance on the resolution phase, as well as giving EU regulators the necessary tools to ensure supervisory convergence across the EU.”
The consultation period in each case will remain open until 24 January 2022.
ESMA will host an open hearing on the consultation papers on 14 January 2022 and expects to publish final reports detailing its findings by Q2 2022.
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